AN ACT relating to real estate brokerage.
Amend KRS 324.045 to make all applicants for licensure as a real estate broker subject to a national criminal history check involving the National Crime Information Center; require the applicant to release the results to the commission, pay the costs of the check, and complete the check within 90 calendar days prior to application; amend KRS 324.111, 324.151, and 324.170 to authorize the commission to conduct an emergency hearing for alleged escrow account violations by the licensee; place escrow account overdraft reporting burden on principal brokers; amend KRS 324.117 to clarify that a sales associate may have his or her name in the firm name after two years experience with the firm; amend KRS 324.141 to establish prerequisites for reciprocal licensure; require the commission to promulgate administrative regulations to implement reciprocity provisions; require all foreign applicants to furnish a certificate of good standing from the home jurisdiction with the Kentucky application; amend KRS 324.150 to permit the commission to conduct an emergency hearing in accordance with KRS Chapter 13B if a licensee is alleged to have committed an escrow account violation; require the commission to promulgate regulations to describe when emergency action is justified; amend KRS 324.160 to remove the prohibition for offering prizes to influence a purchaser or prospective purchaser of real estate; amend KRS 324.165 to conform; amend KRS 324.310 and 324.312 to require a principal broker to return an associate's license to the commission immediately upon written termination of that association or at any time upon the commission's request; declare that if a principal broker does not return a license to the commission within five business days, the license is considered released and the principal broker is in violation of conduct that constitutes improper, fraudulent, or dishonest dealing; amend KRS 324.420 to deny an aggrieved party recovery of compensation from the real estate education, research, and recovery fund, unless the compensation is for the actual financial harm suffered and is specifically related to the property; amend KRS 324.010 to define "managing broker"; amend KRS 324.121 to allow either a principal broker or managing broker to be deemed a dual agent in a designated agency situation.

HCS - Retain original provisions of bill, except to add requirement for each applicant to complete and return to the commission within 120 days a signed affidavit verifying that there is nothing on the record to prohibit the applicant from licensure; require broker to provide written notice to the commission if escrow account overdrafts are not corrected within 72 hours; delete requirement to attend a 6 hour commission-approved course on real estate fundamentals for individuals holding an active real estate license in another jurisdiction; amend "property management" definition as limited to transactions of buying, selling, renting, or leasing real property for owners of the real property; use the term "designated manager" rather than "managing broker."

SCS - Retain original provisions; create a new section of KRS Chapter 324 to exempt community association managers and not-for-profit community associations including townhouse, condominium, homeowner, or neighborhood associations from the jurisdiction of the Kentucky Real Estate Commission.